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8-K - 8-K - Dime Community Bancshares, Inc. /NY/a12-10265_18k.htm

Exhibit 99.1

 

Press Release

FOR IMMEDIATE RELEASE

 

 

 

 

GRAPHIC

Contact:

Howard H. Nolan

 

Senior Executive Vice President

 

Chief Financial Officer

 

(631) 537-1001, ext. 7255

 

 

 

BRIDGE BANCORP, INC.

REPORTS FIRST QUARTER 2012 RESULTS

Growth in Loans, Core Deposits and Net Income

 

(Bridgehampton, NY – April 23, 2012)  Bridge Bancorp, Inc. (NASDAQ:BDGE), the parent company of The Bridgehampton National Bank, today announced net income and earnings per share for the first quarter of 2012. Highlights of the Company’s financial results for the quarter include:

 

·

 

Net income of $2.9 million and $.35 per share for the quarter, a 36% increase in net income over 2011.

 

 

 

·

 

Returns on average assets and equity of .88% and 11.52%, respectively.

 

 

 

·

 

Net interest income of $11.4 million, an increase of $1.6 million over 2011, with a net interest margin of 3.70%.

 

 

 

·

 

Total assets of $1.39 billion at March 2012, 29% higher than March 2011.

 

 

 

·

 

Loan growth of $121 million or 23%, compared to March 2011.

 

 

 

·

 

Deposits of $1.20 billion, a 24% increase compared to the first quarter of 2011.

 

 

 

·

 

Continued solid asset quality metrics and reserve coverage.

 

 

 

·

 

Tier 1 Capital increased by $40 million or 49% from March 2011.

 

 

 

·

 

Declared quarterly dividend of $.23 per share.

 

 

“These record results and the Company’s substantial growth reflect our staff’s successful efforts in executing our community banking model. We increased revenue and income by leveraging market opportunities, increasing deposits, and carefully deploying these funds as loans for new and existing customers, while still delivering high levels of customer service efficiently. For over 100 years this has been our business strategy and we believe, if effectively managed, it remains a viable formula for a successful community bank,” commented Kevin M. O’Connor, President and CEO, Bridge Bancorp, Inc.

 



 

Net Earnings and Returns

Net income for the quarter ended March 2012 was $2.9 million or $.35 per share, compared to $2.2 million or $.34 per share, for the same period in 2011. The Company’s net income and earnings per share for the 2011 first quarter includes $0.2 million in acquisition costs, net of tax, associated with the Hamptons State Bank (“HSB”) merger, which closed in May 2011.

 

The increase in net income reflects growth in net interest income and securities gains, partially offset by higher non interest expense. Earnings per share for the quarter ended March 2012, reflects the higher share count associated with the $24 million in capital raised in the fourth quarter of 2011.

 

Growth in interest earning assets generated higher quarterly net interest income.  Average earning assets increased by 28% or $282.8 million compared to the first quarter of 2011.  This growth is coincident with a net interest margin decline to 3.70% from 4.14% in the first quarter of 2011. The margin decline is attributable to historically low market interest rates on repricing assets and liabilities offsetting strong deposit growth and higher loan demand. The provision for loan losses was $0.8 million for the quarter; $0.1 million higher than the comparable 2011 quarter due primarily to loan portfolio growth.  In the 2012 first quarter, total non interest income, excluding net securities gains, increased 16%.  During the quarter, certain securities were sold at a gain of $0.3 million with the proceeds utilized to pay off higher rate borrowings.  The $0.8 million increase in non interest expense included $0.2 million in costs associated with the aforementioned extinguishment of debt.  Although expenses have increased in 2012, the Company’s efficiency ratio improved to 61.0% from 63.7% in the first quarter of 2011.

 

“The revenue improvements were driven by growth in our loan and investment portfolios offsetting the impact of lower rates. We continue to expand and develop customer relationships generating core deposit growth in both new and existing markets. Our higher capital level allows us to expand and fund new loans, generating incremental revenue to offset higher costs associated with credit and investments in new branches, technology and staff,” noted Mr. O’Connor.

 

Balance Sheet and Asset Quality

Total assets of $1.39 billion at quarter end were $311.4 million higher than the March 2011 level of $1.07 billion, reflecting strong organic growth and, to a lesser extent, the May 2011 HSB acquisition. Loans increased $120.5 million or 23%, while investment securities increased $218.7 million or 47%.  Growth was funded principally by deposits, which ended the first quarter at $1.2 billion, including $318.5 million of demand deposits. Additionally, as part of a strategy to deploy excess capital, borrowings were increased and the additional funding was used to purchase investment securities.  Finally, the $2.3 million in non-performing loans held for sale at December 2011 were sold in January 2012 without generating a gain or loss during the quarter.

 

Asset quality measures improved as non-performing assets (“NPA”) at March 2012 declined 55% to $3.4 million from $7.5 million at March 2011, and currently non-performing loans represent only 0.53% of total loans, compared to 1.43% at March 2011.  The allowance for loan losses at March 31, 2012 increased $2.3 million to $11.3 million, compared to March 2011. The allowance as a percentage of total loans was 1.76% at March 2012, compared to 1.72% at March 2011.

 

“These current asset quality metrics remain well above peers and reflect our adherence to disciplined and prudent underwriting standards,” commented Mr. O’Connor.

 

Stockholders’ equity grew $43.1 million to $110.0 million at March 2012 compared to $66.9 million in March 2011. The increase reflects the capital raised in 2011 through stock offerings, the HSB transaction and the Dividend Reinvestment Plan, as well as continued earnings growth, net of dividends.  Overall, Tier 1 Capital increased to $121.7 million or 49% higher than the March 2011 level.  The

 



 

Company’s capital ratios exceed all regulatory minimums and the Bank continues to be classified as well capitalized.

 

Challenges & Opportunities

“The challenges for our industry and our Company are obvious: the economy and its impact on our customers and credit costs, market interest rates and their impact on margins and capital, the regulatory environment and its impact on revenue and expenses, and finally competition, both current and prospective, and its potential to profoundly challenge our current business model,” noted Mr. O’Connor.

 

“Our opportunities are the by-product of these challenges.  We have to maintain our stringent underwriting standards and diligently monitor credit concentrations and exposures as we grow.  We need to prudently price all products and structure our balance sheet for the eventuality of higher rates. We will seek new sources of revenue while monitoring expenditures and identifying opportunities to achieve efficiencies.  Finally, we must capitalize on current competitors’ dislocations and distractions while investing in infrastructure and technology to be prepared for the evolving competitive landscape.

 

“Our strategic goals reflect this assessment and these tenets remain the basis for implementing the tactical initiatives of our business plan. They are considered in credit decisions, loan pricing and setting deposit rates.  They determine staffing levels in branches, operations and compliance related initiatives. They factor into our investments in businesses to produce other sources of revenue.  We remain committed to branch based banking and during the second quarter we will be opening our 21st branch, in Ronkonkoma, near MacArthur Airport, a regional transportation hub in our market place. We continue to assess opportunities for additional branch expansion in contiguous markets. We also expect to roll out our new electronic banking platform in the second half of this year. This will allow us to enhance the delivery of current technology, and more importantly, effectively deliver the next generation of products and services to our existing and new customer base.

 

“Finally, we are proud to again be ranked by SNL as one of the top 100 banks in the country in terms of financial performance and in fact, we were ranked 2nd in New York State and the only bank in the State to repeat,” concluded Mr. O’Connor.

 

About Bridge Bancorp, Inc.

Bridge Bancorp, Inc. is a bank holding company engaged in commercial banking and financial services through its wholly owned subsidiary, The Bridgehampton National Bank.  Established in 1910, the Bank, with assets of approximately $1.4 billion, and a primary market area of Suffolk County, Long Island, operates 20 retail branch locations. Through this branch network and its electronic delivery channels, it provides deposit and loan products and financial services to local businesses, consumers and municipalities. Title insurance services are offered through the Bank’s wholly owned subsidiary, Bridge Abstract. Bridge Investment Services offers financial planning and investment consultation.

 

The Bridgehampton National Bank continues a rich tradition of involvement in the community by supporting programs and initiatives that promote local business, the environment, education, healthcare, social services and the arts.

 

Please see the attached tables for selected financial information.

 



 

This report may contain statements relating to the future results of the Company (including certain projections and business trends) that are considered “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “PSLRA”).  Such forward-looking statements, in addition to historical information, involve risk and uncertainties, and are based on the beliefs, assumptions and expectations of management of the Company.  Words such as “expects,”  “believes,”  “should,” “plans,” “anticipates,” “will,” “potential,” “could,” “intend,” “may,” “outlook,” “predict,” “project,” “would,” “estimated,” “assumes,” “likely,” and variation of such similar expressions are intended to identify such forward-looking statements.  Examples of forward-looking statements include, but are not limited to, possible or assumed estimates with respect to the financial condition, expected or anticipated revenue, and results of operations and business of the Company, including earnings growth; revenue growth in retail banking lending and other areas; origination volume in the  consumer, commercial and other lending businesses; current and future capital management programs; non-interest income levels, including fees from the title abstract subsidiary and banking services as well as product sales; tangible capital generation; market share; expense levels; and other business operations and strategies.  For this presentation, the Company claims the protection of the safe harbor for forward-looking statements contained in the PSLRA.

 

Factors that could cause future results to vary from current management expectations include, but are not limited to, changing economic  conditions; legislative and regulatory changes, including increases in FDIC insurance rates; monetary and fiscal policies of the federal government; changes in tax policies; rates and regulations of federal, state and local tax authorities; changes in interest rates; deposit flows; the cost of funds; demands for loan products; demand for financial services; competition; changes in the quality and composition of the Bank’s loan and investment portfolios; changes in management’s business strategies; changes in accounting principles, policies or guidelines; changes in real estate values; a failure to realize or an unexpected delay in realizing, the growth opportunities and cost savings anticipated from the Hamptons State Bank merger; an unexpected increase in operating costs, customer losses and business disruptions  following the Hamptons State Bank merger; expanded regulatory requirements as a result of the Dodd-Frank Act, which could adversely affect operating results; and other factors discussed elsewhere in this report, and in other reports filed by the Company with the Securities and Exchange Commission.   The forward-looking statements are made as of the date of this report, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Condition (unaudited)

(In thousands)

 

 

 

March 31,

 

December 31,

 

March 31,

 

 

 

2012

 

2011

 

2011

 

ASSETS

 

 

 

 

 

 

 

Cash and Due from Banks

 

$

18,427

 

$

25,921

 

$

14,320

 

Interest Earning Deposits with Banks

 

5,630

 

53,625

 

40,351

 

Total Cash and Cash Equivalents

 

24,057

 

79,546

 

54,671

 

 

 

 

 

 

 

 

 

Securities Available for Sale, at Fair Value

 

507,011

 

441,439

 

325,964

 

Securities Held to Maturity

 

178,301

 

169,153

 

141,348

 

Total Securities

 

685,312

 

610,592

 

467,312

 

 

 

 

 

 

 

 

 

Securities, Restricted

 

2,020

 

1,660

 

1,284

 

 

 

 

 

 

 

 

 

Loans Held for Sale

 

 

2,300

 

 

 

 

 

 

 

 

 

 

Loans Held for Investment

 

643,184

 

612,143

 

522,674

 

Less: Allowance for Loan Losses

 

(11,316

)

(10,837

)

(9,015

)

Loans, net

 

631,868

 

601,306

 

513,659

 

Premises and Equipment, net

 

24,428

 

24,171

 

23,457

 

Goodwill and Other Intangible Assets

 

2,332

 

2,350

 

 

Accrued Interest Receivable and Other Assets

 

16,321

 

15,533

 

14,524

 

Total Assets

 

$

1,386,338

 

$

1,337,458

 

$

1,074,907

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Demand Deposits

 

$

318,520

 

$

321,496

 

$

247,949

 

Savings, NOW and Money Market Deposits

 

706,228

 

683,863

 

586,539

 

Certificates of Deposit of $100,000 or more

 

135,497

 

140,578

 

91,116

 

Other Time Deposits

 

42,237

 

42,248

 

40,342

 

Total Deposits

 

1,202,482

 

1,188,185

 

965,946

 

Federal Funds Purchased and Repurchase Agreements

 

47,538

 

16,897

 

16,332

 

Junior Subordinated Debentures

 

16,002

 

16,002

 

16,002

 

Other Liabilities and Accrued Expenses

 

10,339

 

9,387

 

9,698

 

Total Liabilities

 

1,276,361

 

1,230,471

 

1,007,978

 

Total Stockholders’ Equity

 

109,977

 

106,987

 

66,929

 

Total Liabilities and Stockholders’ Equity

 

$

1,386,338

 

$

1,337,458

 

$

1,074,907

 

 

 

 

 

 

 

 

 

Selected Financial Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value Per Share

 

$

12.70

 

$

12.54

 

$

10.44

 

 

 

 

 

 

 

 

 

Capital Ratios

 

 

 

 

 

 

 

Total Capital (to risk weighted assets)

 

15.7

%

16.2

%

13.6

%

Tier 1 Capital (to risk weighted assets)

 

14.5

%

15.0

%

12.3

%

Tier 1 Capital (to average assets)

 

9.1

%

9.3

%

7.8

%

 

 

 

 

 

 

 

 

Asset Quality

 

 

 

 

 

 

 

Non-performing loans

 

$

3,383

 

$

4,161

 

$

7,471

 

Real estate owned

 

 

 

 

Non-performing assets

 

$

3,383

 

$

4,161

 

$

7,471

 

 

 

 

 

 

 

 

 

Non-performing loans/Total loans

 

0.53

%

0.68

%

1.43

%

Allowance/Non-performing loans

 

334.50

%

260.44

%

120.67

%

Allowance/Total loans

 

1.76

%

1.77

%

1.72

%

Allowance/Originated loans

 

1.85

%

1.87

%

1.72

%

 


 


 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of  Income  (unaudited)

(In thousands, except per share amounts)

 

 

 

Three months ended

 

 

 

March 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Interest Income

 

$

13,298

 

$

11,596

 

Interest Expense

 

1,898

 

1,812

 

Net Interest Income

 

11,400

 

9,784

 

Provision for Loan Losses

 

825

 

700

 

Net Interest Income after Provision for Loan Losses

 

10,575

 

9,084

 

Other Non Interest Income

 

1,458

 

1,250

 

Title Fee Income

 

223

 

204

 

Net Securities Gains

 

272

 

 

Total Non Interest Income

 

1,953

 

1,454

 

Salaries and Benefits

 

5,111

 

4,175

 

Acquisition Costs

 

 

233

 

Amortization of Core Deposit Intangible

 

18

 

 

Cost of Extinguishment of Debt

 

158

 

 

Other Non Interest Expense

 

2,934

 

3,000

 

Total Non Interest Expense

 

8,221

 

7,408

 

Income Before Income Taxes

 

4,307

 

3,130

 

Provision for Income Taxes

 

1,368

 

970

 

Net Income

 

$

2,939

 

$

2,160

 

Basic Earnings Per Share

 

$

0.35

 

$

0.34

 

Diluted Earnings Per Share

 

$

0.35

 

$

0.34

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Financial Data:

 

 

 

 

 

 

 

 

 

 

 

Return on Average Total Assets

 

0.88

%

0.83

%

Return on Average Stockholders’ Equity

 

11.52

%

13.64

%

Net Interest Margin

 

3.70

%

4.14

%

Efficiency Ratio

 

60.95

%

63.72

%

Operating Expense as a % of Average Assets

 

2.45

%

2.85

%

 



 

BRIDGE BANCORP, INC. AND SUBSIDIARIES

Supplemental Financial Information

Condensed Consolidated Average Balance

Sheets And Average Rate Data (unaudited)

(In thousands)

 

 

 

Three months ended March 31,

 

 

 

2012

 

2011

 

 

 

 

 

 

 

Average

 

 

 

 

 

Average

 

 

 

Average

 

 

 

Yield/

 

Average

 

 

 

Yield/

 

(In thousands)

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net (including loan fee income)

 

$

617,718

 

$

9,522

 

6.20

%

$

502,019

 

$

7,955

 

6.43

%

Securities

 

624,011

 

4,129

 

2.66

 

463,543

 

4,010

 

3.51

 

Federal funds sold

 

 

 

 

 

 

 

Deposits with banks

 

36,759

 

24

 

0.26

 

30,130

 

18

 

0.24

 

Total interest earning assets

 

1,278,488

 

13,675

 

4.30

 

995,692

 

11,983

 

4.88

 

Non interest earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Assets

 

69,048

 

 

 

 

 

58,051

 

 

 

 

 

Total assets

 

$

1,347,536

 

 

 

 

 

$

1,053,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

$

899,373

 

$

1,446

 

0.65

%

$

709,086

 

$

1,336

 

0.76

%

Federal funds purchased and repurchase agreements

 

16,308

 

111

 

2.74

 

17,144

 

134

 

3.17

 

Federal Home Loan Bank term advances

 

 

 

 

 

 

 

Junior Subordinated Debentures

 

16,002

 

341

 

8.57

 

16,002

 

342

 

8.67

 

Total interest bearing liabilities

 

931,683

 

1,898

 

0.82

 

742,232

 

1,812

 

0.99

 

Non interest bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand deposits

 

306,543

 

 

 

 

 

242,406

 

 

 

 

 

Other liabilities

 

6,661

 

 

 

 

 

4,895

 

 

 

 

 

Total liabilities

 

1,244,887

 

 

 

 

 

989,533

 

 

 

 

 

Stockholders’ equity

 

102,649

 

 

 

 

 

64,210

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

1,347,536

 

 

 

 

 

$

1,053,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/interest rate spread

 

 

 

11,777

 

3.48

%

 

 

10,171

 

3.89

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest earning assets/net interest margin

 

$

346,805

 

 

 

3.70

%

$

253,460

 

 

 

4.14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: Tax equivalent adjustment

 

 

 

(377

)

 

 

 

 

(387

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income

 

 

 

$

11,400

 

 

 

 

 

$

9,784